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Jefferson City's Housing Market: Resilient Growth Amidst Rising Home Values
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Jefferson City, Missouri's capital, is a thriving community along the Missouri River with a population of 51,233 in 2022. The city's housing market has shown interesting trends over the past decade, with stable homeownership rates despite rising home prices and rents.
The homeownership rate in Jefferson City has remained consistent, ranging between 60% and 62% from 2013 to 2022. During this period, average home prices increased significantly, from $133,643 in 2012 to $223,444 in 2022, representing a 67% rise over a decade. This upward trend in home prices did not significantly impact homeownership rates, indicating Jefferson City's continued appeal to potential homebuyers despite the price increases.
Federal interest rates have influenced homeownership trends in Jefferson City. From 2013 to 2016, when interest rates were very low (0.09% to 0.4%), the homeownership rate stayed stable at around 60-61%. As interest rates rose more noticeably from 2017 (1%) to 2019 (2.16%), the homeownership rate remained steady, demonstrating the city's resilience to moderate interest rate changes.
Renter percentages in Jefferson City have shown slight variations, ranging from 38% to 40% between 2013 and 2022. Average rent prices have increased more substantially during this period, rising from $689 in 2013 to $768 in 2022, an 11.5% increase. The most notable increase occurred between 2020 and 2021, when average rent rose from $849 to $883, possibly reflecting broader economic shifts during the pandemic.
In 2023, the average home price in Jefferson City reached $236,800, with federal interest rates at 5.02%. In 2024, the average home price further increased to $246,823, while interest rates slightly rose to 5.33%. These figures indicate a continuing upward trend in home prices, even as interest rates remain at their highest levels in over a decade.
Predictive models suggest that average home prices in Jefferson City may continue to rise over the next five years, potentially reaching around $280,000 by 2029. Average rent prices are also expected to increase, possibly exceeding $900 per month within the same timeframe. These projections assume stable economic conditions and do not account for potential market disruptions.
Jefferson City's housing market has demonstrated resilience and steady growth. The stability in homeownership rates despite rising home prices suggests a strong local economy and continued demand for homeownership. The gradual increase in both home prices and rent indicates a healthy real estate market, with potential for continued growth in the coming years.
